US crude for December delivery dipped to US$80.50, while Brent crude slipped to US$78.92. Oil prices dipped from US$82 at the end of last week as the US dollar strengthened as compared to other currencies and doubts over the pace of economic recovery halted oil’s recent rally. The S&P stock index .SPX dipped by over 1%, as weak industrial sector earnings made investors question the pace of an economic recovery. The decline in equities markets and a stronger dollar indicates a temporary halt in oil price rally.
Disappointing Q3 earnings from industrial companies such as oil field services giant Schlumberger and chip-maker Broadcom Corp triggered uncertainty about the pace of economic recovery, sending U.S. stocks lower. Data showed that Britain's economy unexpectedly shrank by 0.4% in Q3, shaking economist expectations for a return to growth from the worst recession in decades. US economic data showed a larger-than expected rise in workers filing new claims for jobless aid last week.